The construction industry isn’t a solid, uniform mass but
rather a constantly evolving entity. On this blog, I have tracked technological
and environmental
trends transforming the industry, as well as, of course, legal updates. The
construction industry in California, and in the larger United States is
affected by a variety of events and fluctuations. Taking a look at current
events, as well as what’s around the bend, is one way construction business
owners and others involved with the industry could prepare, where possible, for
coming changes. In this post, I’m looking at three things that are shaping the construction
industry as we head further into the summer of 2016, with
an emphasis on California construction issues.
One development taking shape now originated a year ago, when
a balcony
collapse in Berkeley led to 6 fatalities. Criminal
charges were not filed in connection with the incident, but the owner,
builder and management company of the property were named in a civil lawsuit. Since
that incident, government authorities have been taking steps to potentially address any
future issues that could arise from similar circumstances. For example, following a determination
that wood rot was the cause of the collapse, the City of Berkeley released a
report which found that omissions
in the Building Code itself could have contributed to the collapse. Immediately
after the incident, a bill was introduced that would have required California contractors to officially
report certain civil lawsuit settlements. Senate Bill 465 failed
to move forward in the California Assembly. Then, last month, the
California legislature advanced an amended bill that would mandate contractors
to notify the California State License Board (“CSLB”) of
felony or work-related criminal convictions .The bill put forward last year caused
a stir among California contractors. A trade association representing the
interests of contractors argued that a civil litigation settlement may
not provide an accurate representation of the quality of work performed.
Some big news recently came from the other side of the
Atlantic, the departure of Great Britain from the European Union, what has been
called “Brexit”. Americans immediately began to wonder if economic or other
effects of the move would be felt in the United States. The housing market may
have responded quickly to this development, which some see as a positive. The logic is that America could receive a
possible financial boost due to Brexit causing real estate investors to move
their interests out of England . Others believe that the long term effects
may not be so beneficial, as the overall consequences of Britain’s decision
could slow
down the US economy and therefore, the housing market.
Finally, a growing demand for green construction has taken
what could be an important turn in Northern California. In the coming years, California contractors will be required
to meet certain standards in the building
of new homes, set forth by the California Energy Commission. In an attempt
to create a pathway for meeting these standards, a Canadian firm is now working
on a
net-zero residential project, the first of its kind. In Silicon Valley, a newly
constructed home could mark the beginning of a new trend in residential
construction, the use of steel instead of wood as building material. A company
called BONE Structure is working on a
custom home in Palo Alto that differs from the standard approach to
construction in several ways – in addition to the steel frame, the building
method consists of the off-site manufacture of custom made components, that are
then shipped and put together at the location of the property. The objective of
BONE Structure’s model appears to build energy efficient homes, which are also
protected from natural events and other types of damage, and allow for
less waste during construction, in a way that’s potentially feasible on a
larger scale for California builders and homeowners.
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